Jason Blum of Blumhouse Productions is following the "If it ain't broke, don't fix it" school of thought when it comes to micro-budget horror franchises.  Having seen great success with the Paranormal Activity series and with the second installment of Insidious due out later this summer, a sequel to last fall's Sinister is now in the works.  Reportedly made for $3 million and bringing in around $80 million worldwide, the money is clearly behind forging ahead with establishing a third franchise.  Fans of the original will be happy to hear that the creative talent behind the camera will reunite for the sequel.  Hit the jump for more.

Deadline reports that Blum is moving ahead with plans for a sequel to Sinister.  The original starred Ethan Hawke (Gattaca) as a true crime novelist who discovers a box of disturbing home movies that, when watched, drag his family into a living nightmare.  The cast and plot for the sequel are currently being kept under wraps.  Writers Scott Derrickson and C. Robert Cargill will return to pen the sequel; though Derrickson also directed the original, it's not clear whether or not he'll helm the next installment. Blum and Derrickson will produce the picture.

In related news, Blumhouse and Derrickson are also busy adapting the Stephen King novella The Breathing Method.  The nested story takes place in an exclusive gentleman’s club where the price for membership is the telling of stories.  One man begins to recount the tale of a woman in the 1930s who was determined to give birth to her illegitimate child, no matter the cost.  She seeks out the physician author of a book on the Breathing Method of childbirth, and grows close with the doctor as her determination fails to wane.